Budget & Taxes

HR 3072, the DOGE Codification Act of 2025, formally codifies the actions of the fictional "Department of Government Efficiency" (DOGE) established by a prior executive order. The bill states that all rules, policies, regulatory changes, and budget savings implemented by DOGE must retain full legal force, with no agency allowed to revert these changes without new DOGE action or congressional approval. This directly affects federal agencies that previously operated under DOGE's directives, locking in its regulatory and budgetary modifications as permanent. The bill does not create new policy but ensures existing DOGE-driven changes remain in effect.

HR 2994, the Child and Dependent Care Tax Credit Enhancement Act of 2025, increases financial support for families covering childcare costs. It raises the credit rate to 50% (reduced for higher incomes), boosts the maximum creditable amount from $3,000 to $8,000 per child under 13 (or $6,000 to $16,000 for other dependents), and adjusts these limits annually for inflation starting in 2026. The bill also ensures married couples filing separately calculate their credit as if filing jointly, preventing reduced benefits. It directly affects low- and middle-income taxpayers with childcare expenses who itemize deductions. The changes take effect for tax years beginning after December 31, 2024.

The Advancing Water Reuse Act creates a 30% tax credit for businesses investing in qualifying water recycling systems. It directly affects industrial, manufacturing, data center, and food processing facilities that replace freshwater use with recycled water from municipal sources, as well as projects building municipal water recycling infrastructure to serve these sectors. The credit covers 30% of the cost for eligible equipment, such as new onsite recycling systems or municipal infrastructure upgrades. This policy is available for projects completed by December 31, 2032, with specific rules allowing businesses to claim the credit even if equipment is later transferred to water utilities.

Promoting Affordable Childcare for Everyone Act or the PACE Act This bill increases and makes refundable the tax credit for qualified child and dependent care expenses. The bill also increases the exclusion from gross income for employer-provided child and dependent care benefits. Under current law, a nonrefundable tax credit is allowed for up to 35% (maximum tax credit percentage) of qualified child and dependent care expenses incurred by an individual to work or look for work, up to a maximum amount. The percentage of such expenses allowed as a tax credit may be reduced, but not below 20% (minimum tax credit percentage), based on an individual’s adjusted gross income. The bill generally increases the tax credit for qualified child and dependent care expenses by increasing the maximum tax credit percentage to 50%, increasing the minimum tax credit percentage to 35%, and adjusting the maximum credit amounts annually for inflation. The bill also makes the tax credit for qualified child and dependent care expenses refundable. Finally, the bill increases and adjusts for inflation the amount that may be excluded from gross income for employer-sponsored child and dependent care benefits (e.g., dependent care flexible spending arrangements) to $7,500 (from $5,000).

HR 2294 reauthorizes the Integrated Coastal and Ocean Observation System Act of 2009, extending funding and updating governance for the nation's ocean and coastal observation network. It changes references from "Council" to "Committee" throughout the law and adds requirements for federal agencies to collaborate with regional coastal observing systems on data sharing. The bill specifically directs agencies to conduct operational oceanography measurements and establishes $56 million annually for fiscal years 2026 through 2030 to support this system. This bill directly affects federal agencies managing ocean observation programs and regional coastal data networks.

HR 2832, the Defend American Manufacturing Act, mandates that the U.S. Department of Commerce continue funding the Hollings Manufacturing Extension Partnership (HMEP) program in all 50 states and Puerto Rico through fiscal year 2025 and beyond. It requires the Commerce Secretary to competitively renew and award HMEP centers annually, changing the current language from "may" to "shall" to make this funding requirement mandatory. The bill directly affects small and mid-sized manufacturers by ensuring ongoing access to technical assistance, training, and resources through state-based centers. This policy change solidifies the program’s structure without introducing new taxes, regulations, or eligibility criteria.

HR 2748 increases the penalty-free withdrawal limit for first-time homebuyers from retirement accounts from $10,000 to $25,000 under IRS rules. This directly affects first-time homebuyers who need to access retirement savings without early withdrawal penalties. The bill also adds an inflation adjustment mechanism, automatically raising the $25,000 limit each year after 2026 based on the cost-of-living index. The changes apply to withdrawals made after December 31, 2025, for tax years ending after that date.

HR 2391 creates a new $7,500 federal tax credit for eligible commercial truck drivers in 2025, increasing to $10,000 for new drivers. To qualify, drivers must hold a Class A commercial driver’s license, operate qualifying tractor-trailers, earn under $135,000 annually (for joint filers), and drive at least 1,900 hours yearly (or average 40 hours weekly). Special rules apply for apprenticeship program participants and drivers with fewer than 1,420 hours. The credit expires after 2026 and adjusts annually for inflation starting in 2026.

HR 3270, the Air Traffic Control Workforce Development Act of 2025, aims to strengthen the pipeline of air traffic controllers by improving training programs and retention. It provides $20 million annually (2026-2031) for colleges to develop specialized curricula and equipment through the Enhanced-Collegiate Training Initiative program, allowing graduates to be hired noncompetitively as controllers. The bill also establishes a committee to modernize training curricula and the Air Traffic Skills Assessment exam, while creating retention bonuses for certified controllers and mental health training for medical examiners. These changes directly affect colleges offering air traffic control programs, prospective controllers, and current FAA air traffic controllers.

The "You Earned It, You Keep It Act" (HR 2909) would exempt wages above $250,000 from Social Security taxes after 2025 and include income over $250,000 in Social Security benefit calculations. It applies to high-wage earners and self-employed individuals whose income exceeds this threshold, with special provisions for those receiving wages from multiple employers. The bill modifies how Social Security taxes are calculated by removing the tax on income above $250,000 and adjusts benefit formulas to count that income toward future payments. These changes would affect how Social Security taxes are paid and benefits are determined for high earners beginning in 2026.